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MAIN HEADLINES FROM THIS ISSUE:

The European Commission has launched infringement procedures against Denmark and the Netherlands. The two countries are accused of imposing unjustified offset requirements by demanding compensation from non-national suppliers when purchasing defence equipment. The member states have two months to respond. Asked if he believes there was any wrongdoing by Denmark…

India’s Defence Acquisition Council has announced significant changes to the country’s Make-II policy. Only Indian vendors are eligible for participation under this acquisition category. Suppliers may now use the ‘Make’ procurement category either in isolation or with any of the five other bands. Offsets apply to the ‘Buy (Global)’ or ‘Buy and Make’ categories…

The governments of Malaysia and Singapore have agreed to collaborate on a multi-billion dollar high-speed rail project connecting the two nations’ capital cities. Malaysia will call for local industry participation and technology transfer as a mandatory part of any bid under the country’s Economic Enhancement Programme. Singapore has no such policy.

The US-India Business Council is now upbeat on the potential for U.S. companies to work with India’s defence sector, despite earlier unease. A productive dialogue with the Indian government is now addressing the concerns raised in a USIBC letter sent last August.

President Donald Trump told global finance leaders at Davos he will always put the U.S. first when it comes to trade, but his comments regarding reforms to the international trading system may foreshadow policies that will influence how American prime contractors will react to demands for offsets.